11 Superannuation Calculation Modes

There are now three modes for calculating the superannuation liability for employees.

Auto Current Pay - Calculation based only on current pay regardless of earnings (this is the default and functions how super used to be calculated if 'Stop Super Auto Calculation' was NOT ticked.)
Calendar Month - When calendar month earnings reach $450 super is applied in the current pay.
Monthly Super Calc Program - Super is never included in the current pay, it is performed using Monthly Super Calc Program (this works the same way super used to be calculated if 'Stop Super Auto Calculation' was ticked.

In Single Touch payroll, the ATO has specified that the superannuation liability should be reported at the time (in the pay) when the liabilty is incurred which means that only the Auto Current Pay or the new Calendar Month modes are suitable. The Monthly Super Calc Program may not give the outcome required by the ATO in STP.

Auto Current Pay Superannuation Calculation Mode

This is the default calculation mode. It calculates super based on the current pay irrespective of the $450 threshold.

This mode may be a good choice for employees where you know they will always reach the $450 threshold in the month or where you want to pay superannuation even if the employee does not reach $450 in the month.

With the Auto Current Pay mode used, and using a SCG percentage of 9.5%, calculations are as per the following examples:

Employee A:
14/7/2018 - Paid: $150 – Gross for Month: $150 - Super Liability for pay: $14.25

28/7/2018 - Paid: $150 – Gross for Month: $300 - Super Liability for pay: $14.25

            Total Super for month: 28.5

Employee B:
14/7/2018 - Paid: $300 – Gross for Month: $300 - Super Liability for pay: $28.5

28/7/2018 - Paid: $300 – Gross for Month: $600 - Super Liability for pay: $28.5

            Total Super for month: 57

Employee C:
14/7/2018 - Paid: $500 – Gross for Month: $500 - Super Liability for pay: $47.5

28/7/2018 - Paid: $500 – Gross for Month: $1000 - Super Liability for pay: $47.5

            Total Super for month: 95

To enable the Auto Current Pay Superannuation Calculation mode select Auto Current Pay against the Employee's Super Pay Detail line:

When that employee is included in a pay the super line will always appear and be calculated from the appropriate gross pay amounts (flagged as 'Include in Superannuation Calculation') in the pay run:

Calendar Month Superannuation Calculation Mode

This is a new superannuation calculation mode. When calendar month earnings reach $450 super is applied in the current pay for the entire month to date.

This mode may be a good choice for employees where you only want to pay superannuation when the employee reaches $450 in the month.

With the Calendar Month mode used, and using a SGC percentage of 9.5%, calculations are as per the following examples:

Employee A:
14/7/2018 - Paid: $150 – Gross for Month: $150 - Super Liability for pay: $0

28/7/2018 - Paid: $150 – Gross for Month: $300 - Super Liability for pay: $0

            Total Super for month: 0

Employee B:
14/7/2018 - Paid: $300 – Gross for Month: $300 - Super Liability for pay: $0

28/7/2018 - Paid: $300 – Gross for Month: $600 - Super Liability for pay: $57

            Total Super for month: 57

Employee C:
14/7/2018 - Paid: $500 – Gross for Month: $500 - Super Liability for pay: $47.5

28/7/2018 - Paid: $500 – Gross for Month: $1000 - Super Liability for pay: $47.5

            Total Super for month: 95

To enable Calendar Month Superannuation Calculation mode select Calendar Month against the Employee's Super Pay Detail line:

When they are included in a pay the super line will only appear once the $450 threshold has been reached and be calculated from all appropriate gross pay amounts (flagged as 'Include in Superannuation Calculation') in the calendar month:

Example Pay 1: for this first pay in the month, the threshold is not reached and the superannuation line does not appear. Hovering over the blue info icon gives information around why there is no super line.

Example Pay 2: for this second pay in the month, when, the threshold has not been reached, the superannuation line also does not appear.

Once the amount in this second pay takes the employee over the $450 threshold for the month, a super pay line appears in blue and calculates the superannuation from both pays. Hovering over the information icon now explains this super line.

Configuration Options

The threshold, which at time of writing was $450, can be set in Payroll Configuration > General Tab

By default this calculation mode will determine which pays are in the calendar month by Posting Date. This can be changed to Payment Available Date by checking the option: 'Calc based on Payment Available Date'.

Click here to show example calculations (showing difference between Posting Date and Payment Available date)

An example of how Synergetic would use the posting/payment available date options for two employees over a three month period

Pay	Posting Date	Payment Available Date	Employee A Payment Amount	Employee B Payment Amount
1	Mon 6/8/2018	Fri 3/8/2018	$200	$100
2	Mon 20/8/2018	Fri 17/8/2018	$200	$200
3	Mon 3/9/2018	Fri 31/8/2018	$200	$200
4	Mon 17/9/2018	Fri 14/9/2018	$200	$100
5	Mon 1/10/2018	Fri 28/9/2018	$200	$100
6	Mon 15/10/2018	Fri 13/10/2018	$200	$100
7	Mon 29/10/2018	Fri 27/10/2018	$200	$100

Employee A when based on posting date ('Calc based on Payment Available Date' is NOT ticked)

$400 gross in August (no super)
$400 gross in September (no super)
$600 gross in October ($57 super)

Employee A when based on payment available date ('Calc based on Payment Available Date' IS ticked)

$600 gross in August ($57 super)
$400 gross in September (no super)
$600 gross in October (no super)

Employee B when based on posting date ('Calc based on Payment Available Date' is NOT ticked)

$300 gross in August (no super)
$300 gross in September (no super)
$300 gross in October (no super)

Employee B when based on payment available date ('Calc based on Payment Available Date' IS ticked)

$500 gross in August ($47.5 super)
$200 gross in September (no super)
$200 gross in October (no super)

Monthly Super Calc Program Superannuation Calculation Mode

In this superannuation calculation mode, no superannuation is calculated in normal or special pays for the employee. Superannuation is done at the end of the month using the Monthly Super Calculation program which creates a separate pay, purely containing the superannuation calculations.

It is the same calculation method as previously occurred when the field 'Stop Superannuation Calculation' was ticked against the super liability line for the employee.

Our understanding is that this mode is not suitable for superannuation calculation reporting under Single Touch Payroll.

With the Monthly Super Calc Program mode used, and using a SGC percentage of 9.5%, calculations are as per the following examples:

Employee A:

14/7/2018 - Paid: $150 – Gross for Month: $150 - Super Liability for pay: $0

28/7/2018 - Paid: $150 – Gross for Month: $300 - Super Liability for pay: $0

31/7/2018 - Monthly Super Calc Pay - Gross for Month: $300 Super Liability for pay: $0

Employee B:

14/7/2018 - Paid: $300 – Gross for Month: $300 SGC: $0

28/7/2018 - Paid: $300 – Gross for Month: $600 SGC: $0

31/7/2018 - Monthly Super Calc Pay - Gross for Month: $600  Super Liability for pay: $57

Employee C:

14/7/2018 - Paid: $500 – Gross for Month: $500 SGC: $0

28/7/2018 - Paid: $500 – Gross for Month: $1000 SGC $0

31/7/2018 - Monthly Super Calc Pay - Gross for Month: $1000 Super Liability for pay: $95

To enable Monthly Super Calculation mode select Monthly Super Calc Program against the Employee's Super Pay Detail line:

In regular or special pays, the superannuation line will not occur:

Superannuation can be calculated in a special pay at the end of the month by running the Monthly Superannuation Calculation program. This creates a pay that only contains superannuation lines.

Configuration Options

The default threshold value which occurs on the Superannuation Pay creation screen (which at time of writing was $450) can be set in Payroll Configuration > General Tab.

This program always calculates the pays using the posting dates within the date range selected.